How to estimate and plan the budget for Xiaohongshu’s spotlight campaign?

Stephen Chow's short drama "Golden Pig and Jade Leaf" attracted attention due to its fame and film-like production style, but the reviews were polarized.

We all know that if you want to place ads accurately on Xiaohongshu, you need the help of Juguang. However, compared with the KOL ads with clearly marked prices, it is difficult to find a reference and estimate the budget of Juguang.

So, today I would like to give some suggestions on estimating and planning the budget for spotlight placement to those friends who are preparing to place a spotlight but don’t know how to make a budget.

1. Determine your marketing needs

Before allocating a budget, clarify the goals of the launch phase, such as brand exposure, sales conversion, or customer consultation collection. Different marketing demands correspond to different launch strategies, which will directly affect the budget allocation.

2. Audience Analysis, Testing and Optimization

Allocate a certain percentage of the budget for A/B testing in the early stages to find the most effective combination by testing different notes, delivery times, and audience targeting.

For example, for the same note, try to set up promotions at different time points/different cities/different groups of people/different age audiences, etc.

By comparing and analyzing the data, we can understand the profile of the audience groups that are most interested in the product. This can help us to deliver more accurately in subsequent promotions and reduce unnecessary consumption costs.

3. Advertising format selection

Allocate budget based on (site-wide smart investment, search, etc.) Different advertising formats may have different cost-effectiveness ratios.

1. [Brand exposure] usually adopts

Full-site smart investment is an advertising capability of Juguang platform. It can intelligently calculate the delivery according to the attributes and characteristic materials of the brand. Because the promotion scope of full-site smart investment is actually information flow + search + video flow, it is to get as much exposure as possible on the basis of pursuing cost, and because it includes the promotion of some searches, it will also enhance the conversion of traffic to account weight.

For example, from the perspective of post-00s social animals, the brand "Xinve Electric Toothbrush" needs to increase the account weight and number of fans through some traffic-guiding content. Therefore, it is very suitable for them to increase exposure through full-site smart investment, and at the same time, they can also harvest a group of users who are interested in this content and products and convert them into fans.

In addition to the rapid heating of professional accounts, you can also achieve marketing demands such as new product launches, Marketing, Campaigns, and rapid increase in brand voice through full-site smart investment. The full-site smart investment method can help brands quickly increase exposure. Usually, the exposure cost of full-site smart investment is lower than that of targeted investment. The cost is that the crowd is not as precise and is relatively broad.

2. [Sales conversion], usually adopted

Search ads are promotional notes that appear directly on the browsing page after users search for keywords in the search box. "High keywords are more accurate." Because the promotion effect can appear on the search page after the target users with strong consumption needs search, the traffic is also the most accurate, the conversion rate is also the highest, and the cost is higher than that of smart investments, and it is usually aimed at precise groups of people.

If you just want to increase exposure, it is recommended to choose full-site smart investment; if you want precise delivery and sales conversion, it is recommended to invest in search.

4. Budget classification

The budget should be divided into different levels, with one part used for testing and optimization, one part for the stable period of deployment, and one part as an emergency budget to deal with market changes or emergencies.

As for the total budget, you can use the size of the population to work backwards. For example, if you have set the target population, and you want to achieve 1 million clicks for this group of people, the CPC from the initial test is 0.5 yuan, so you can calculate that 500,000 yuan is needed to achieve these 1 million clicks.

If you don't set a target audience and just want to heat up the high-quality materials, then it is recommended to allocate 25% of the influencer's budget as an information flow heating budget. For example, if the influencer spends a total of 1 million yuan, it is recommended to allocate 250,000 yuan for the information volume budget.

5. Effect tracking

By tracking the performance of ads in real time, including key indicators such as click-through rate and conversion rate, budget allocation can be adjusted based on the results.

Keep an eye on indicators such as CTR, CPC, CPE, etc. If there are major promotional events in the near future, such as the recent 618, there may be fierce competition and rising costs. In this case, you should consider whether to participate in the competition. If you do, consider increasing your budget.

In addition to real-time tracking during the campaign, review after the campaign is also very important. It can be used as a reference for the next campaign budget. With the standards of the first campaign, the budget and goals for the second campaign will be easy to set.

Author: Vic's Marketing Thoughts;

Source: WeChat official account: Vic’s Marketing Thoughts;